Port of Corpus Christi is fearful of fiscal impact from an offshore terminal

The Port of Corpus Christi has made its concerns about a proposed offshore oil terminal plainly clear — it doesn’t want it to happen.

The reasons center on two primary concerns. Port officials fear a lack of state oversight on the Texas Gulf Terminals project and what environmental impact there would be should an oil spill occur at the terminal, which would be located 13 miles off the Padre Island National Seashore.

There’s also the inevitable question of what fiscal impact the terminal, which would be owned and operated by international commodities trading company Trafigura, would have on the Port of Corpus Christi. Port officials haven’t said what financial losses, if any, they could be facing if the Trafigura project comes to fruition.

But the Port of Corpus Christi is the nation’s largest exporter of crude oil. With work set to get underway on widening and deepening its ship channel to handle larger vessels, there are questions about the effect Trafigura’s project would have on the port’s continued growth.

“The port has a right to be concerned,” said State Sen. Juan “Chuy” Hinojosa. “Any project that would negatively impact their revenues would raise red flags.”

The Caller-Times reached out to members of the Coastal Bend delegation this week to gauge their stance on Trafigura’s proposed offshore terminal, for which the company is applying for a permit under the federal Deepwater Port Act. The act essentially allows any governor in an adjoining state — Texas in this instance — who is opposed to the project to veto its proposal and put a stop to it.

The Port of Corpus Christi last month voted to hire a lobbying firm for $100,000 to work on curbing offshore deep water ports like the one proposed by Trafigura that could have a negative impact on the environment or Texas ports. At the time of the company’s hiring, port officials said they would reach out to Gov. Greg Abbott to “kill” Trafigura’s project.

“The governor has the absolute right to kill that deal, and so we’re working on that,” Port of Corpus Christi Commission chairman Charlie Zahn said at a Sept. 18 meeting.

Abbott’s office, in an e-mail to the Caller-Times on Monday, declined to comment on whether the governor supports or opposes Trafigura’s Texas Gulf Terminals Project.

Trafigura officials have said that its offshore terminal would “complement, not replace exports from the Port of Corpus Christi,” adding that the facility would handle only about 10 percent of the expected growth in U.S. oil production.

But local legislators voiced their concerns about Trafigura’s project, while also acknowledging that there are too many unanswered questions as the project is still going through the federal permitting process.

Hinojosa said his concerns centered on what environmental impact the offshore terminal could have, and its impact on the port.

“Obviously, I represent the Port of Corpus Christi, and I would side with them,” Hinojosa said.

Trafigura officials have previously said that they are complying with all state and federal agencies to ensure the facility is operated responsibly.

“Texas Gulf Terminals will be working with federal and state agencies to address any concerns as we move through the permitting process,” said the company’s prior statement in September. “As outlined in our permit application, TGTP will follow a ‘zero spill’ philosophy. The project will fully comply with the 1990 Oil Pollution Act (OPA) standards and requirements. In addition, the project will have a spill response plan approved by the U.S. Coast Guard.”

District 34 State Rep. Abel Herrero said in a statement to the Caller-Times on Thursday that he was hopeful that both the port and Trafigura would continue any dialogue to address concerns raised by either party. The goal, he said, is to ultimately find a way to help the port and community continue the economic growth of the past several years.

“We’re aware of the project and working with the Port of Corpus Christi and parties involved to ensure a positive outcome,” Herrero said. “We will facilitate a continued dialogue that will help support our growing Port and bring in new investments and jobs to our bustling economy.”

District 32 State Rep. Todd Hunter on Monday said that he hasn’t had any “detailed explanations” of the Texas Gulf Terminals project, but was aware of the port’s concerns. Hunter said that there hasn’t been any request made to the Coastal Bend delegation to take any type of action against Trafigura’s project, but he was hopeful that if nothing else, they could help facilitate dialogue between both sides.

“My view is I’m going to support the port and get behind the port, just like Sen. Hinojosa would,” Hunter said. “And I think he and I are doing the same thing, encouraging the parties to at least exchange information and confer. But I haven’t been asked … to take any action yet.”

In nearby Kleberg County, the reception to Trafigura’s project has been quite the opposite. Kleberg County commissioners voted unanimously on Sept. 10 to pass a resolution supporting new investments in petrochemical infrastructure along the Texas Gulf Coast.

While the resolution does not specifically mention Trafigura’s project specifically, Kleberg County Judge Rudy Madrid said that he was fully in support of the terminal, part of which would go through Kleberg County, and whatever economic benefit it could mean for residents. The county is lacking in industrial development, and Madrid said Trafigura’s terminal could lead to further investment from companies down the line.

District 43 State Rep. J.M. Lozano, who represents Kleberg County, did not return messages seeking comment for this story as of press time.

“This project for me is a no-brainer for Kleberg County,” Madrid said. “Far too often do I see all the other big counties, such as Nueces County, who are very rich in resource development and industry — that’s something that Kleberg County has been lacking for a very long time.”

“That’s going to open up windows down the line for the oil industry to come back,” he added. “That gives job strength and growth to our local residents, that builds homes, that builds our economy — there’s absolutely no reason in my mind why anybody should want to oppose this, unless they’re trying to profit off this themselves, like the Port of Corpus Christi.”

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